How to Enter a Vendor Credit in QuickBooks

Overview

A vendor credit in QuickBooks is used to record a credit or refund you have received from a supplier. This reduces the amount you owe on future bills from that vendor.

How to Enter a Vendor Credit

1. Click the + New button (or the Create button) in the left navigation panel.

2. Select "Vendor Credit" from the list of transaction types under the Vendors section.

3. Choose the vendor -- Select the vendor who issued the credit from the dropdown list, or add a new vendor if needed.

4. Enter the credit details -- Fill in the date, reference number (if applicable), and the credit amount. Assign the appropriate expense account or item.

5. Save the credit -- Click Save and Close to record the vendor credit.

Applying the Credit to a Bill

After you have entered the vendor credit, it will be available to apply against future bills from that vendor:

1. Go to + New > Pay Bills.
2. Select the bill you want to pay.
3. QuickBooks will show any available credits from that vendor. Check the box to apply the credit to the bill.
4. The credit will reduce the payment amount due.

Tips

• Make sure to assign the vendor credit to the correct expense account so your financial reports remain accurate.
• Review your Accounts Payable aging report periodically to confirm that credits have been properly applied.